The Importer-Exporter Code, usually called the IEC, is the first registration every Indian exporter or importer needs. Without it, customs will not clear your shipment and your bank will not process the foreign payment. The good news is that it is one of the simplest government registrations in India: the application is fully online, the fee is Rs 500, and most people can finish it in under an hour.
This guide explains what the IEC is, who needs one, what to keep ready, and how to apply yourself on the DGFT website.
What is an IEC?
The IEC is a 10-character code issued by the Directorate General of Foreign Trade (DGFT), which works under the Ministry of Commerce and Industry. Since 2017 the IEC is the same as your PAN. A proprietor uses a personal PAN, while a partnership, LLP or company uses the PAN of the business.
One PAN can hold only one IEC. If your business has several branches, they all work under the same code, and you simply add the branch addresses to it.
Who needs an IEC?
Anyone who wants to send goods out of India or bring goods into India for business needs an IEC. This includes merchant exporters who buy from manufacturers and sell abroad, manufacturers who export directly, and online sellers who ship products to customers in other countries.
You generally do not need an IEC for goods imported or exported for personal use and not connected with trade, manufacture or agriculture. Service exporters need one only if they want to claim benefits under the Foreign Trade Policy.
Documents and details to keep ready
Collect these before you start, because the portal session can time out if you leave it idle for too long.
- PAN of the proprietor or the business
- A mobile number and email address for OTP verification
- Proof of business address, such as an electricity bill, rent agreement or sale deed
- A cancelled cheque or bank certificate for the current account
- Aadhaar of the applicant for e-signing, or a Digital Signature Certificate
- Basic business details: type of firm, date of incorporation, and the nature of your activity
How to apply online
The whole process happens on the DGFT portal. You do not need to visit any office.
- Go to dgft.gov.in and register as an Importer/Exporter using your PAN, mobile number and email
- Log in, open the Services menu and choose IEC Profile Management, then Apply for IEC
- Fill in the general information, address, branch details, proprietor or director details, and bank account
- Upload the address proof and the cancelled cheque or bank certificate
- Sign the application with Aadhaar e-sign or a Digital Signature Certificate
- Pay the Rs 500 government fee online
- Download the IEC certificate, which is usually generated soon after payment
Remember the yearly update
An IEC does not expire and has no renewal fee. However, DGFT requires every IEC holder to confirm or update their details on the portal once a year, between April and June. You must do this even if nothing has changed.
If you miss the update, the IEC is deactivated and your shipments can get stuck at customs. Reactivation is possible by completing the update, but it is far easier to set a yearly reminder.
Common mistakes to avoid
Most rejected or delayed applications fail for small, avoidable reasons.
- The name on the bank account does not match the name on the PAN
- A savings account is given for a company or LLP instead of a current account
- The uploaded address proof is unclear or in a different name
- Paying a consultant several thousand rupees for a Rs 500 application you can file yourself
- Forgetting the April to June annual update
What to do after you get your IEC
The IEC lets you trade legally, but a first shipment needs a few more things. Register for GST and file a Letter of Undertaking so you can export without paying IGST upfront. Ask your bank for an AD Code letter and register it at the port you will ship from. Finally, join the Export Promotion Council for your product, such as APEDA for food and agricultural goods, to get a Registration-cum-Membership Certificate and become eligible for export incentives.
This article is general information for readers starting out. Rules, fees and procedures change, so confirm the current requirements with the relevant authority, your bank or a qualified adviser before acting.